BILL REQ. #:  S-1369.1 

Read first time 02/13/2003.   Referred to Committee on Commerce & Trade.

     AN ACT Relating to making interest arbitration panel determinations; amending RCW 41.56.465 and 41.56.492; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The state, under chapter 41.56 RCW, has established guidelines and factors to be considered in determining interest arbitration decisions setting compensation and benefit spending levels for certain public employees. These guidelines and factors include consideration of the consumer price index to help determine compensation levels. Subsequent to the enactment of chapter 41.56 RCW, the people of the state, through voter approval, have adopted state referenda and initiatives establishing the implicit price deflator for personal consumption as the standard and basis for determining inflationary increases in governmental spending and revenue authority.
     The legislature finds that the use of the consumer price index in chapter 41.56 RCW is in conflict and incompatible with recent voter-approved legislation adopting the implicit price deflator as the basis for determining increases in spending and revenue authority. The legislature intends to eliminate this conflict by amending chapter 41.56 RCW to adopt the implicit price deflator as a basis for determining increases in compensation levels.
     The legislature also finds it in the interest and welfare of the public for the arbitration panel to consider the financial ability of the respective unit of government.

Sec. 2   RCW 41.56.465 and 1995 c 273 s 2 are each amended to read as follows:
     (1) In making its determination, the panel shall be mindful of the legislative purpose enumerated in RCW 41.56.430 and, as additional standards or guidelines to aid it in reaching a decision, it shall take into consideration the following factors:
     (a) The constitutional and statutory authority of the employer;
     (b) Stipulations of the parties;
     (c)(((i))) The interest and welfare of the public as determined by the governing body of the public employer and the financial ability, excluding reserves, of the public employer to meet the costs of the parties' proposals, without requiring the reduction of programs or staff and giving due consideration and weight to the other services provided by, and the other priorities of the public employer as determined by its governing body;
     (d) For employees listed in RCW 41.56.030(7) (a) through (((d))) (h), comparison of the wages, hours, and conditions of employment of personnel involved in the proceedings with the wages, hours, and conditions of employment of like personnel of like employers of similar size on the west coast of the United States. However, when an adequate number of comparable employers exists within the state of Washington, other west coast employers may not be considered;
     (((ii) For employees listed in RCW 41.56.030(7)(e) through (h), comparison of the wages, hours, and conditions of employment of personnel involved in the proceedings with the wages, hours, and conditions of employment of like personnel of public fire departments of similar size on the west coast of the United States. However, when an adequate number of comparable employers exists within the state of Washington, other west coast employers may not be considered;
     (d) The average consumer prices for goods and services, commonly known as the cost of living;))
     (e) The percentage change in the implicit price deflator for personal consumption expenditures for the United States as published by the bureau of economic analysis of the federal department of commerce for the year preceding the year in which interest arbitration panel proceedings are initiated;
     (f) In making economic determinations, internal equity and local labor market considerations shall be given substantial weight;
     (g) Changes in any of the circumstances under (a) through (d) of this subsection during the pendency of the proceedings; and
     (((f))) (h) Such other factors, not confined to the factors under (a) through (((e))) (g) of this subsection, that are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment. For those employees listed in RCW 41.56.030(7)(a) who are employed by the governing body of a city or town with a population of less than fifteen thousand, or a county with a population of less than seventy thousand, consideration must also be given to regional differences in the cost of living.
     (2) Subsection (1)(((c))) (d) of this section may not be construed to authorize the panel to require the employer to pay, directly or indirectly, the increased employee contributions resulting from chapter 502, Laws of 1993 or chapter 517, Laws of 1993 as required under chapter 41.26 RCW.

Sec. 3   RCW 41.56.492 and 1993 c 473 s 1 are each amended to read as follows:
     In addition to the classes of employees listed in RCW 41.56.030(7), the provisions of RCW 41.56.430 through 41.56.452, 41.56.470, 41.56.480, and 41.56.490 shall also be applicable to the employees of a public passenger transportation system of a metropolitan municipal corporation, county transportation authority, public transportation benefit area, or city public passenger transportation system, subject to the following:
     (1) Negotiations between the public employer and the bargaining representative may commence at any time agreed to by the parties. If no agreement has been reached ninety days after commencement of negotiations, either party may demand that the issues in disagreement be submitted to a mediator. The services of the mediator shall be provided by the commission without cost to the parties, but nothing in this section or RCW 41.56.440 shall be construed to prohibit the public employer and the bargaining representative from agreeing to substitute at their own expense some other mediator or mediation procedure; and
     (2) If an agreement has not been reached following a reasonable period of negotiations and mediation, and the mediator finds that the parties remain at impasse, either party may demand that the issues in disagreement be submitted to an arbitration panel for a binding and final determination. In making its determination, the arbitration panel shall be mindful of the legislative purpose enumerated in RCW 41.56.430 and as additional standards or guidelines to aid it in reaching a ((decisions [decision])) decision, shall take into consideration the following factors:
     (a) The constitutional and statutory authority of the employer;
     (b) Stipulations of the parties;
     (c) The interest and welfare of the public as determined by the governing body of the public employer and the financial ability, excluding reserves, of the public employer to meet the costs of the parties' proposals, without requiring the reduction of programs or staff and giving due consideration and weight to the other services provided by, and the other priorities of the public employer as determined by its governing body;
     (d) Compensation package comparisons, economic indices, fiscal constraints, and similar factors determined by the arbitration panel to be pertinent to the case; ((and
     (d))) (e) The percentage change in the implicit price deflator for personal consumption expenditures for the United States as published by the bureau of economic analysis of the federal department of commerce for the year preceding the year in which interest arbitration panel proceedings are initiated;
     (f) In making economic determinations, internal equity and local labor market considerations shall be given substantial weight; and
     (g) Such other factors, not confined to the foregoing, which are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment.